What is the primary metric for determining executive bonuses in 2008?

The primary metric for determining executive bonuses is the company's operating profit. For the multi-year incentive plans, stock price performance is also a factor.

Who is eligible to receive bonuses under these incentive plans?

The incentive plans cover certain officers of the company, including Martin B. Anstice, Abdi Hariri, Thomas J. Bondur, Richard A. Gottscho, and Ernest E. Maddock, as well as certain other non-executive officers. The CEO and Executive Chairman are excluded from these specific plans as detailed in this filing.

When will awards from the multi-year incentive plans be paid?

Awards from the 2007/2008 Multi-Year Incentive Plan (MYIP) will vest and be paid in 2009. Awards from the 2008/2009 MYIP will vest and be paid in 2010.

Does the Compensation Committee have flexibility in determining the final bonus amounts?

Yes, the Compensation Committee retains discretion over the final incentive payments. They can adjust bonus amounts from the calculated figures based on their judgment, and they also have the ability to revise performance goals for the second half of 2008 if deemed necessary.

LRCX 8-K: Leadership Changes

Summary

Lam Research Corporation (LRCX) filed an 8-K on February 5, 2008, detailing the establishment of executive incentive plan performance goals for calendar year 2008. The Compensation Committee approved corporate performance goals for both a short-term (first half of 2008) and multi-year incentive plans. These plans tie executive bonuses to the company's operating profit and, for the multi-year plans, also consider stock price performance.

Key Highlights

1Lam Research's Compensation Committee set performance goals for its 2008 executive incentive plans on January 31, 2008.
2The short-term incentive plan for the first half of 2008 is primarily based on the company's operating profit.
3Bonuses for covered officers (excluding CEO and Executive Chairman) can range from zero to 2.25 times their target bonus percentage based on performance.
4Multi-year incentive plans (2007/2008 and 2008/2009 MYIPs) were also addressed, with awards vesting and being paid in subsequent years (2009 and 2010, respectively).
5Multi-year plans incorporate company operating profits and a stock price performance factor.
6Award accruals for multi-year plans can range from 0 to approximately 2.5 times target amounts.
7The Compensation Committee retains discretion over final bonus payouts, allowing for adjustments based on its judgment.

LAM RESEARCH CORP 8-K Report, Executive Changes (Feb 6, 2008)

Summary

Key Highlights

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